Gold Resource Corporation (NYSE-A:GORO, ETR:GIH) (GRC) said it has revised its guidance for 2023 as market volatility, challenging economic conditions and the lower grade profile of its current mineral reserves and mineral resources have had an adverse impact on the company’s 2022 cash flows and consolidated earnings.
GRC CEO Allen Palmiere noted that while the company made excellent strides last year with its operations, capital, and exploration programs, 2022 was a challenging year for GRC on a number of fronts.
“We will continue identifying operational efficiencies and cost improvement opportunities in 2023; however, as per our 2023 guidance, lower gold grades will result in less production in 2023 than in 2022 and further significantly contribute to increased Cash Costs and All-in Sustaining Costs,” he said.
READ: Gold Resource Corporation reports more than 30,000 ounces of gold sold in 2022 after beating production guidance
The company now expects payable production in 2023 of 17,000 to 19,000 gold ounces, 900,000 to 1 million silver ounces, and 30,000 to 31,000 gold equivalent ounces.
Palmiere added that he remained optimistic 2023 would provide opportunities to grow the company in new directions.
“More importantly, we are eager to advance the exploration drilling at a number of highly prospective underground targets in Mexico,” he said.
“With the Back Forty Project, we will continue work on the feasibility study with a deliberate and measured approach.”
Further, the company said it would be suspending its quarterly dividend until such time that it may become practicable to reinstate it.
GRC is a gold and silver producer, developer, and explorer with its operations centred on the Don David gold mine in Oaxaca, Mexico.
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